Switch to:
Quanta Services Inc (NYSE:PWR)
Beneish M-Score
-2.26 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Quanta Services Inc has a M-score of -2.26 suggests that the company is not a manipulator.

PWR' s 10-Year Beneish M-Score Range
Min: -3.33   Max: -1.16
Current: -2.26

-3.33
-1.16

During the past 13 years, the highest Beneish M-Score of Quanta Services Inc was -1.16. The lowest was -3.33. And the median was -2.44.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Quanta Services Inc for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0284+0.528 * 1.0278+0.404 * 0.9224+0.892 * 1.2697+0.115 * 0.9706
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1572+4.679 * 0.0075-0.327 * 1.1075
=-2.26

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $1,873 Mil.
Revenue was 2171.144 + 1864.55 + 1762.574 + 1817.623 = $7,616 Mil.
Gross Profit was 352.971 + 281.448 + 272.071 + 302.843 = $1,209 Mil.
Total Current Assets was $2,536 Mil.
Total Assets was $6,229 Mil.
Property, Plant and Equipment(Net PPE) was $1,388 Mil.
Depreciation, Depletion and Amortization(DDA) was $188 Mil.
Selling, General & Admin. Expense(SGA) was $657 Mil.
Total Current Liabilities was $1,128 Mil.
Long-Term Debt was $83 Mil.
Net Income was 94.648 + 81.082 + 54.408 + 166.697 = $397 Mil.
Non Operating Income was -0.378 + -1.233 + 0.643 + 113.299 = $112 Mil.
Cash Flow from Operations was 64.119 + 32.756 + -60.533 + 201.492 = $238 Mil.
Accounts Receivable was $1,435 Mil.
Revenue was 1645.132 + 1474.377 + 1585.71 + 1293.195 = $5,998 Mil.
Gross Profit was 273.053 + 241.284 + 238.273 + 226.351 = $979 Mil.
Total Current Assets was $2,137 Mil.
Total Assets was $5,495 Mil.
Property, Plant and Equipment(Net PPE) was $1,154 Mil.
Depreciation, Depletion and Amortization(DDA) was $151 Mil.
Selling, General & Admin. Expense(SGA) was $447 Mil.
Total Current Liabilities was $965 Mil.
Long-Term Debt was $0 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(1873.241 / 7615.891) / (1434.701 / 5998.414)
=0.24596479 / 0.23918006
=1.0284

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(281.448 / 5998.414) / (352.971 / 7615.891)
=0.16320331 / 0.15879074
=1.0278

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (2536.467 + 1388.134) / 6229.289) / (1 - (2137.387 + 1153.629) / 5494.968)
=0.36997609 / 0.4010855
=0.9224

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=7615.891 / 5998.414
=1.2697

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(150.66 / (150.66 + 1153.629)) / (187.513 / (187.513 + 1388.134))
=0.11551121 / 0.11900699
=0.9706

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(656.641 / 7615.891) / (446.922 / 5998.414)
=0.08621985 / 0.07450669
=1.1572

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((83.186 + 1128.127) / 6229.289) / ((0 + 964.787) / 5494.968)
=0.19445446 / 0.17557645
=1.1075

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(396.835 - 112.331 - 237.834) / 6229.289
=0.0075

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Quanta Services Inc has a M-score of -2.26 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Quanta Services Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.96571.08271.09911.16850.75370.92290.93991.18290.97280.9835
GMI 1.0910.80730.93210.91810.96120.9391.10831.20240.84740.9789
AQI 0.99590.92260.80662.01840.94510.94311.04110.9830.88181.0661
SGI 0.99011.14271.14661.24641.42330.87781.18481.17621.28041.1018
DEPI 0.9090.98291.03041.33160.83411.18470.91981.06810.99551.1101
SGAI 0.97960.96010.84811.05450.90391.15040.91770.93350.91071.0456
LVGI 0.98360.97021.00220.58280.62980.90220.76261.4421.03121.0509
TATA -0.1067-0.0342-0.0295-0.0244-0.0214-0.0523-0.0186-0.01810.0386-0.027
M-score -2.97-2.56-2.48-1.69-2.35-2.93-2.30-2.26-2.20-2.53

Quanta Services Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.02410.98090.97280.98521.06461.01910.98351.06181.05551.0284
GMI 0.95010.9240.84740.88880.88680.91040.97890.99171.02541.0278
AQI 0.95980.90720.88180.87530.8761.02231.06611.09241.08340.9224
SGI 1.36751.4561.28041.16941.05830.97691.10181.10181.17411.2697
DEPI 1.02190.99420.99551.05391.09471.14811.11011.07331.01750.9706
SGAI 0.84520.83090.91070.97381.02031.02771.04561.15151.1091.1572
LVGI 1.43151.3691.03121.00380.91810.87851.05091.05221.06551.1075
TATA 0.00780.03450.03940.02430.019-0.0083-0.027-0.01210.00450.0075
M-score -2.25-2.10-2.19-2.33-2.36-2.51-2.53-2.39-2.24-2.26
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK